Vt function

Actuarial Excel Addin

The Vt function, from the actuarial notation vt, is the discounted value at time 0 of $1 payable in t years.

See also: TruncVector.


* : Required parameter

Parameters
Default
Description
Interest *
--
Interest rate(s): single rate or vector of rates
Duration *
--
Duration in years, fraction allowed

Example #1
Single interest rate: Discounted value at time 0 of $1 payable in 3.33 years if interest rate is 3.25% per year

Interest = 3.25%

Duration = 3.33

Vt(Interest, Duration) returns 0.898972


Example #2
Multiple interest rates: Discounted value at time 0 of $1 payable in 8.33 years if interest rates are: 3.25% per year for the first 5.25 years and 4% per year thereafter

Interest = (3.25%, 5.25, 4%)

Duration = 8.33

Vt(Interest, Duration) returns 0.749229